Definitions

from The American Heritage® Dictionary of the English Language, 5th Edition.

  • noun An amount paid or required, often as an installment payment, for an insurance policy.
  • noun An amount paid to obtain a loan.
  • noun An interest payment, usually on a regular basis, on a loan.
  • noun A sum of money or bonus paid in addition to a regular price, salary, or other amount.
  • noun The amount at which something, such as a security or a currency, is valued above its initial or nominal price.
  • noun The amount at which a securities option is bought or sold.
  • noun Something offered free or at a reduced price as an inducement to buy something else.
  • noun A prize or award.
  • noun An unusual or high value.
  • noun Archaic Payment for training in a trade or profession.
  • adjective Of superior quality or value.
  • idiom (at a premium) More valuable than usual, as from scarcity.

from The Century Dictionary.

  • noun A reward; a recompense given for a particular action or line of conduct.
  • noun That which is given for the loan of money; interest.
  • noun In insurance, the amount paid or agreed to be paid in one sum or periodically to insurers as the consideration for a contract of insurance. See insurance, 2.
  • noun In banking and currency, the difference by which the value of one metallic currency exceeds that of another of the same denomination, or by which a metallic currency exceeds a paper currency of the same denomination in the same country; agio: the opposite of discount, or disagio, which is the amount by which the value of one currency has depreciated when compared with another.
  • noun In stock-broking, etc., the percentage of difference by which the market price of shares, stocks, bonds, etc., exceeds their face-value or the sum originally paid for them: thus, when stock originally issued at $100 per share sells at $140 per share, it is said to be at a premium of 40 per cent.

from the GNU version of the Collaborative International Dictionary of English.

  • noun A reward or recompense; a prize to be won by being before another, or others, in a competition; reward or prize to be adjudged; a bounty
  • noun Something offered or given for the loan of money; bonus; -- sometimes synonymous with interest, but generally signifying a sum in addition to the capital.
  • noun A sum of money paid to underwriters for insurance, or for undertaking to indemnify for losses of any kind.
  • noun A sum in advance of, or in addition to, the nominal or par value of anything

from Wiktionary, Creative Commons Attribution/Share-Alike License.

  • adjective Superior in quality; higher in price or value.
  • noun A prize or award.
  • noun Something offered at a reduced price as an inducement to buy something else.
  • noun A bonus paid in addition to normal payments.
  • noun The amount to be paid for an insurance policy.
  • noun An unusually high value.
  • noun finance The amount by which a security's value exceeds its face value.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

  • noun payment or reward (especially from a government) for acts such as catching criminals or killing predatory animals or enlisting in the military
  • noun a prize, bonus, or award given as an inducement to purchase products, enter competitions initiated by business interests, etc.
  • adjective having or reflecting superior quality or value
  • noun the amount that something in scarce supply is valued above its nominal value
  • noun payment for insurance
  • noun a fee charged for exchanging currencies

Etymologies

from The American Heritage® Dictionary of the English Language, 4th Edition

[Latin praemium, inducement, reward : prae-, pre- + emere, to take, buy; see em- in Indo-European roots.]

Examples

  • Bear in mind that we do not give a premium or open an account for less than _two_ subscriptions (one of which, however, may be your own); but, _after the account is opened_, you may add one subscription at a time if you choose -- never omitting to state in your letter _that it is to go to your credit for a premium_.

    The Nursery, January 1877, Volume XXI, No. 1 A Monthly Magazine for Youngest Readers

  • The term "premium online video" has often been used to refer to programming produced by Hollywood studios and programmers, but premium is now increasingly being defined by the marketer and by the viewer, said online video ad experts during the Beet.

    Andy Plesser: "Premium Video" Is Defined by Both Producer and Audience

  • The term "premium online video" has often been used to refer to programming produced by Hollywood studios and programmers, but premium is now increasingly being defined by the marketer and by the viewer, said online video ad experts during the Beet.

    Andy Plesser: "Premium Video" Is Defined by Both Producer and Audience

  • Now, the GOP prefers the term "premium support" for voucher because "voucher" carries a negative connotation.

    Politifact Has Decided That A Totally True Thing Is The "Lie Of The Year," For Some Reason

  • One explanation is that there has been a dramatic drop in the term premium, that is, a decline in the extra expected return that investors require in order to hold long-term securities.

    Long-term Federal Bond Rates and the Risk Premium

  • One explanation is that there has been a dramatic drop in the term premium, that is, a decline in the extra expected return that investors require in order to hold long-term securities.

    In Defense of Corporate Taxes

  • Aaron and Brookings are the two gentlemen who originally came up with the term "premium support" to describe their idea for a Medicare system where the program is opened up to competition by private insurers but has safeguards built in to protect Medicare beneficiaries from the very cost shifting program the Ryan plan proposes.

    Forbes.com: News

  • Aaron and Brookings are the two gentlemen who originally came up with the term "premium support" to describe their idea for a Medicare system where the program is opened up to competition by private insurers but has safeguards built in to protect Medicare beneficiaries from the very cost shifting program the Ryan plan proposes.

    Forbes.com: News

  • These new spirits cost so much, in fact, that the term premium no longer covers it--there's now a super-premium category and an ultra-premium category.

    Spirits Gift GuideGifts For The Spirit Drinker

  • "The market would have to anticipate a hike for the 10- year yield to get to four percent," said Pandl, who uses a version of the term premium model to help value Treasuries.

    BusinessWeek.com -- Top News

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